The Case

CONservative Spin:

“We should at least give people a gas tax holiday to relieve some of the pain families are feeling at the pump, as Sen. John McCain has proposed. But what we really should look at doing long-term is abolishing the federal gasoline tax altogether, or at least lowering it substantially. Let the states handle transportation, not the federal government.”
 Source

Jerry Taylor and Peter Van Doren. "Don't Increase Federal Gasoline Taxes—Abolish Them." Cato Institute. August 7, 2007.

Isaiah J. Poole's picture

PROgressive Response:

Doing away with federal gasoline taxes for even a short period of time will do serious damage to the economy as we head into a recession and as high gas prices affect our commuting patterns. Federal gasoline tax dollars go into a trust fund that helps pay for roads, bridges and mass transit. According to the federal government's own calculations, every $1 billion spent of the gasoline tax revenues creates nearly 35,000 jobs. A summertime "gas tax holiday" could cost the nation almost 350,000 jobs and would halt work on vital improvements to roads and bridges, as well as mass transit systems stressed by new riders leaving their cars at home. According to the Congressional Budget Office, we're already falling behind in our ability to pay for our transportation needs. The bigger issue is this: An economy that depends on the efficient interstate movement of goods and services can't afford to continue starving the maintenance and growth of our transportation network. But that's what we've done under the Bush administration, which opposed moves even from within its own party to increase transportation spending enough to match actual needs. Dumping the burden on already-strapped and unevenly equipped states won't solve the problem. A transportation system that allows the economy to operate efficiently and save precious fuel is a national priority; we should all share in the costs and the benefits.